Austin startup Nimboxx has raised $12 million to expand its product, which helps businesses maximize the efficiency of their data center usage.
Nimboxx, which was founded in 2012, received the funding from SMC Holdings, a Hong Kong-based institutional investor.
The company previously raised an undisclosed amount of seed funding from SMC.
Nimboxx has developed a device — referred to as a “data-center-in-a-box” — that lets small and mid-sized companies take advantage of new virtualization technology. Virtualization aims to boost efficiency by dividing servers into “virtual machines” that can handle separate jobs with separate software applications.
There has been a surge of early investment in virtualization from corporations that want to get more work done with fewer computers and to save money doing it.
But the shift has been challenging for many smaller IT operations, which lack the technical expertise and resources to deploy new systems.
That’s where Nimboxx comes in, with a hardware device that can perform several data center functions. The device can load “virtual machines” shortly after it is unpacked from the box. The system is hosted on a private cloud.
The technology helps companies “move from legacy architecture that is pretty pervasive today and allows them to get into the new world of elastic computing,” said Trent Fitz, Nimboxx’s chief marketing officer. “It allows them to buy this one thing and they can be using it in 10 minutes.”
Installing Nimboxx results in up to a 40 percent reduction in overall data center costs, Fitz said.
The company has conducted pilots with more than three dozen customers.
Nimboxx will use the funding to accelerate development and to expand its Austin workforce. The company has 26 employees and plans to double that by the end of the year.